Procter & Gamble stock price is sliding, down over 2%, following news that Trian's Nelson Peltz has lost his fight to be elected to the board.
The largest and most expensive corporate proxy battle came to an end Tuesday with Procter & Gamble successfully fending off a campaign by the financier Nelson Peltz for a seat on its board of directors.
The announcement of the preliminary vote count came at the company’s shareholder meeting in Cincinnati.
The P&G price has risen since the summer as Peltz began his proxy fight but those gains are being rapidly unwound..
However, this is not over yet, as Trianis disagreeing with the P&G and is to challenge the count...
“According to our proxy solicitors, today’s vote is too close to call and it will take more time to determine the outcome. We await the certified election results by the independent inspector of election. Trian is pleased with the support we have received from shareholders and all of the nation’s independent proxy advisory firms. We believe shareholders’ voices are being heard at P&G today, thanks to Trian’s involvement.
“With approximately $3.5 billion invested in P&G, Trian has a vested interest in the long-term success of the Company. If elected to the P&G Board, Nelson Peltz plans to start engaging collaboratively with his fellow directors. He has a long history of working collegially with boards and management teams and is looking forward to working closely with P&G’s leadership to revitalize P&G. Regardless of the final voting results, Trian believes management and the Board have been put on notice by shareholders – a continuation of the past decade’s underperformance is simply unacceptable. Trian is confident that P&G shareholders will hold the Board and management accountable and will be far less tolerant of lackluster performance going forward.
“Trian believes in P&G’s potential and wants to see the Company grow market share again and deliver long-term sustainable value for the benefit of all stakeholders. We feel strongly that a shareholder voice is needed in the boardroom and that Trian’s approach will help revitalize P&G.”